ROME (AP) - The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings under terms that values one of the most recognizable names in Italian fashion at 1.25 billion euros ($1.4 billion).
Prada Group announces purchase of Versace fashion house from its U.S. owner in a deal valued at $1.4 billion
ROME (AP) - The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings under terms that values one of the most recognizable names in Italian fashion at 1.25 billion euros ($1.4 billion).
The deal will put Versace, known for sexy silhouettes and bold Greco and Medusa motifs, under the same roof as Prada's "ugly chic" aesthetic and the youth-driven Miu Miu whose stunning growth in recent years has far outpaced the market. Prada said the 47-year-old Versace brand offered "significant untapped growth potential.''
"This is exactly the strength for our group. There are no overlaps in terms of creativity, in terms of customer,″ said Lorenzo Bertelli, Prada's chief marketing officer, who is being groomed to one day take over the business that his parents - Miuccia Prada, the group’s creative force and largest shareholder, and Patrizio Bertelli, its chairman and executive director - have turned into a global fashion juggernaut.
"We are buying a brand with huge potential, with a very recognizable aesthetic,” Lorenzo Bertelli said, underlining that the Versace brand name recognition, putting it among the top 10 in the world, far outweighs its business performance.